Inflatio Mexico 7%
Tax rate 35%
2008 2009
Projected Operating Costs, Manual Process
Unit volume (000s) 496 Materials 564,816 Direct Labor 1,115,184 Overhead 1,680,000 Total 3,360,000 Materials/unit 1.1387 Direct labor/unit 2.2484
Projected Operating Costs, New Automatic Equipment
Unit volume (000s) 496 Materials 542,223 Direct Labor 524,136 Overhead 1,566,211 Total 2,632,570 Materials/unit 1.0932
Direct labor/ unit 1.0567
Cash Flow (MXN)
(+) Cost Savings 727,430
(-) Tax on savings 254,601
(+) Sell old machine 175,000
Book Value old mach 250,000
Booked loss on asset sale 75,000
(+) Tax shield from write of 26,250
(-) Purchase new mach 3,500,000
Depreciation 350,000
(+) Tax shield from dep. 122,500
(-) Service of loan 550,422
Balance 3,500,000 3,271,928
To principal 228,072
Interest (9.21%) 322,350
(+) Tax Shiel interest 112,823
(+) Savage value
Total Cash flow (3,298,750) 157,730
NPV @ Pesos @8% (532,801)
2010 2011 2012 2013 2014 2015 546 600 660 660 660 660 664,788 782,456 920,951 985,417 1,054,396 1,128,204 1,312,572 1,544,897 1,818,343 1,945,627 2,081,821 2,227,549 1,797,600 1,923,432 2,058,072 2,202,137 2,356,287 2,521,227 3,774,960 4,250,785 4,797,366 5,133,181 5,492,504 5,876,980 1.2185 1.3037 1.395 1.4927 1.5971 1.7089 2.4057 2.5741 2.7543 2.9471 3.1534 3.3742 546 600 660 660 660 660 638,197 751,158 884,113 946,001 1,012,221 1,083,076 616,909 726,101 854,621 914,445 978,456 1,046,948 1,675,846 1,793,155 1,918,676 2,052,983 2,196,692 2,350,460 2,930,952 3,270,414 3,657,410 3,913,429 4,187,369 4,480,484 1.1697 1.2516 1.3392 1.433 1.5333 1.6406 1.1307 1.2098 1.2945 1.3852 1.4821 1.5859 844,008 980,371 1,139,956 1,219,752 1,305,135 1,396,496 295,403 343,130 398,985 426,913 456,797 488,774 350,000 350,000 350,000 350,000 350,000 350,000 122,500 122,500 122,500 122,500 122,500 122,500 550,422 550,422 550,422 550,422 550,422 550,422 3,022,851 2,750,834 2,453,764 2,129,334 1,775,024 1,388,082 249,077 272,017 297,070 324,430 354,310 386,942 301,345 278,405 253,352 225,992 196,112 163,480 105,471 97,442 88,673 79,097 68,639 57,218 226,154 306,761 401,723 444,014 489,055 537,019
2016 2017 2018 CAGR 660 660 660 1,207,178 1,291,681 1,382,099 2,383,477 2,550,321 2,728,843 2,697,713 2,886,553 3,088,611 6,288,368 6,728,555 7,199,553 1.8286 1.9566 2.0935 3.6104 3.8631 4.1335 660 660 660 1,158,891 1,240,014 1,326,815 1,120,234 1,198,651 1,282,556 2,514,993 2,691,042 2,879,415 4,794,118 5,129,707 5,488,786 1.7554 1.8783 2.0098 1.6969 1.8157 1.9427 1,494,250 1,598,848 1,710,767 10.0% 522,988 559,597 598,768 350,000 350,000 350,000 122,500 122,500 122,500 550,422 550,422 550,422 965,502 504,003 0 422,579 461,499 504,003 127,842 88,923 46,419 44,745 31,123 16,247 0 588,086 642,452 700,323
Inflatio Mexico 7%
Tax rate 35%
2008 2009 2010
Projected Operating Costs, Manual Process
Unit volume (000s) 496 546 Materials 564,816 664,788 Direct Labor 1,115,184 1,312,572 Overhead 1,680,000 1,797,600 Total 3,360,000 3,774,960 Materials/unit 1.1387 1.2185 Direct labor/unit 2.2484 2.4057
Projected Operating Costs, New Automatic Equipment
Unit volume (000s) 496 546 Materials 542,223 638,197 Direct Labor 524,136 616,909 Overhead 1,566,211 1,675,846 Total 2,632,570 2,930,952 Materials/unit 1.0932 1.1697
Direct labor/ unit 1.0567 1.1307
Cash Flow (MXN)
(+) Cost Savings 727,430 844,008
(-) Tax on savings 254,601 295,403
(+) Sell old machine 175,000
Book Value old mach 250,000
Booked loss on asset sale 75,000
(-) Loss f depreciation of old machine (29,167) (29,167) (+) Tax shield from write of 26,250
(-) Purchase new mach 3,500,000
Depreciation 350,000 350,000
(+) Tax shield from dep. 122,500 122,500
(+) Savage value
Total Cash flow (3,298,750) 566,163 641,938
NPV @ Pesos @12.19% 1,478,997 a) Convert in Euros @15.99MXN/E 92,495
Wacc in Euros 8.00%
Wacc in pesos 12.19% With Fisher effect adjusment
b) NPV in Euros @8% $92,495
NPV in pesos $1,478,997
Inflation Mexico 7% 7% 7%
Inflation Euro 3% 3% 3%
PPP mMXN/Euro $15.99 $16.61 $17.26
Gov rate I rate Mexico 9.12% 9.12% 9.12%
Gov rate I rate France 4.81% 4.81% 4.81%
I Rat MXN/Euro $15.99 $16.65 $17.33 ExperMXN/Euro $15.99 $20.00 $20.00 c) Adjust by inflation (3,298,750) 566,162 621,430 NPV in pesos 869,715 Loan Capex 3,298,750
Sedn to france 869,715 Max int rate
4,168,465 12.19%
Balance 4,168,465 4,168,465 4,110,613
Interest 508,310 501,255
Principal 57,852 120,175
2011 2012 2013 2014 2015 2016 2017 600 660 660 660 660 660 660 782,456 920,951 985,417 1,054,396 1,128,204 1,207,178 1,291,681 1,544,897 1,818,343 1,945,627 2,081,821 2,227,549 2,383,477 2,550,321 1,923,432 2,058,072 2,202,137 2,356,287 2,521,227 2,697,713 2,886,553 4,250,785 4,797,366 5,133,181 5,492,504 5,876,980 6,288,368 6,728,555 1.3037 1.395 1.4927 1.5971 1.7089 1.8286 1.9566 2.5741 2.7543 2.9471 3.1534 3.3742 3.6104 3.8631 600 660 660 660 660 660 660 751,158 884,113 946,001 1,012,221 1,083,076 1,158,891 1,240,014 726,101 854,621 914,445 978,456 1,046,948 1,120,234 1,198,651 1,793,155 1,918,676 2,052,983 2,196,692 2,350,460 2,514,993 2,691,042 3,270,414 3,657,410 3,913,429 4,187,369 4,480,484 4,794,118 5,129,707 1.2516 1.3392 1.433 1.5333 1.6406 1.7554 1.8783 1.2098 1.2945 1.3852 1.4821 1.5859 1.6969 1.8157 980,371 1,139,956 1,219,752 1,305,135 1,396,496 1,494,250 1,598,848 343,130 398,985 426,913 456,797 488,774 522,988 559,597 (29,167) 350,000 350,000 350,000 350,000 350,000 350,000 350,000 122,500 122,500 122,500 122,500 122,500 122,500 122,500 730,574 863,471 915,339 970,838 1,030,222 1,093,763 1,161,751 $40,755 $46,367 $47,315 $48,308 $49,347 $50,432 $51,564
7% 7% 7% 7% 7% 7% 7% 3% 3% 3% 3% 3% 3% 3% $17.93 $18.62 $19.35 $20.10 $20.88 $21.69 $22.53 9.12% 9.12% 9.12% 9.12% 9.12% 9.12% 9.12% 4.81% 4.81% 4.81% 4.81% 4.81% 4.81% 4.81% $18.04 $18.79 $19.56 $20.36 $21.20 $22.07 $22.98 $20.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 683,820 783,440 915,339 970,838 1,030,222 866,394 888,710 3,990,438 3,793,219 3,472,331 2,980,414 2,373,014 1,632,161 964,795 486,601 462,552 423,422 363,437 289,369 199,029 117,649 197,219 320,888 491,917 607,401 740,853 667,365 771,061 3,793,219 3,472,331 2,980,414 2,373,014 1,632,161 964,795 193,734
2018 CAGR 660 1,382,099 2,728,843 3,088,611 7,199,553 2.0935 4.1335 660 1,326,815 1,282,556 2,879,415 5,488,786 2.0098 1.9427 1,710,767 10.0% 598,768 350,000 122,500 0 1,234,499 $52,744
7% 3% $23.41 9.12% 4.81% $23.93 $25.00 911,697 193,734 23,624 888,073 (694,339)
